Bénéteau (BEN) H1 2024 earnings summary

Executive summary

• H1 2024 results reflect resilient financial performance and adaptability, with significant adaptation measures and a value-driven growth strategy focused on premiumization and innovation.

• Dealer stock contraction aligned with forecasts, while retail demand slowed in segments like small power units and monohull sailing, especially in the US.

• Positive market response to new models and innovation initiatives, with continued expansion into new customer segments.

Financial highlights

• Group revenues before IFRS 5 were €766m, down 25.5% year-over-year; H1 2024 revenues reported at €556.6m, down 31.5%; net income (group share) was €49.4m, representing 6.2% of revenues.

• EBITDA before IFRS 5 fell 42% to €111.2m; H1 2024 EBITDA was €77.7m, down 50.8%; income from ordinary operations dropped 51% to €80.1m.

• Free cash flow was negative at -€51.2m; net cash position remained strong at €137m as of June 30, 2024.

• Shareholders' equity stood at €845m at end-June 2024.

Outlook and guidance

• 2024 Boat division revenue guidance confirmed at around €1bn; dealer stock reduction of €100m–€150m expected.

• Ordinary operating margin for the Boat division guided at 4%–6% (6%–8% excluding American brands' operating loss, which is forecast at nearly €15m).

• Free cash flow for the Boat division expected to benefit from €20m–€50m internal inventory reduction.

• Sale of the Housing division to Trigano pending regulatory approval in H2 2024.